3 More Strong Players in the Bakken
With our recent post about some of the best players in the Bakken, I wanted to create a follow up article with additional Bakken stock options. These companies might not be the biggest or most well known companies working in the Bakken, but they are doing great things and working hard for their investors. Atticvs Research comes through again with some solid recommendations.
"Oasis Petroleum (OAS)
Although Oasis may not be the best known driller in the Bakken it is a well run company. It has a strong balance sheet and it is a Bakken pure-play with a large tract of land rights – 318,942 net acres. Additionally, Oasis is almost exclusively an oil company with less than 10% of sales coming from natural gas.
Northern Oil (NOG)
Northern is next on this list in terms of size of lease holdings in the Bakken. It has large core Bakken acreage; 150,000 net acres.
Northern is a virtual pure-play Bakken oil company, generating 100% of sales from Bakken, about 95% from oil. Northern is a non-operator, preferring to partner with various E&P drillers rather than develop in-house drilling operations. The advantage for Northern with this model is that, at least in the early part of the business cycle, it allows the company to function as a low cost company and thereby generate strong profit growth. Longer term, however, there may be some disadvantages in that leading operators are likely to allocate their best drilling crews to wells they fully own and thus wells with a lower working interest, which are partnered with companies such as Northern, may be lower on priority lists with knock-on repercussions in terms of cost and quality."
Find information on the final Bakken player here: http://turnkeyoil.com/2011/07/11/3-more-strong-players-in-the-bakken/